Any euro bulls out there? If you think that EUR/USD is simply making a huge forex price correction and is due to bounce anytime soon, you might wanna keep your eyes glued on the Fibonacci retracement levels on the 1-hour time frame. Take note that this pair has just surged above a falling trend line, indicating that an uptrend may be in the cards. EUR/USD might be on its way to retest this broken resistance area or it could find support at any of the Fibs and attempt to fill that weekend gap.
Here’s another potential break and retest play! On its 1-hour time frame, it appears that GBP/USD is ready to retrace to the 61.8% Fibonacci retracement level. This is right smack in line with the former resistance at the 1.6650 minor psychological level and is close to the 200 SMA. For now, the 100 SMA is still moving above the 200 SMA, which suggests that the short-term uptrend is still intact. Stochastic is almost in the oversold region too, indicating that bulls are ready to charge.
Waiting for a chance to buy the Greenback again? Well this just might be it! After that sharp selloff earlier this month, USD/JPY is finding support at the bottom of its rising channel on the 4-hour time frame. At the same time, stochastic is climbing and indicating that dollar bulls are in control of price action for now. If you’re thinking of going long, watch out for potential resistance at the middle of the forex channel!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.